Buying a home isn’t just about the deposit and mortgage repayments. Many hidden costs catch buyers off guard. Here’s some of the main things you need to factor in when doing your sums.
Stamp Duty
Stamp duty is a government tax on property purchases and varies by state. It can add tens of thousands of dollars to your upfront costs. Some first-home buyers may be eligible for exemptions or discounts.
Use our stamp duty calculator to work out the cost.
Building and Pest Inspections
A professional inspection helps uncover hidden structural or compliance issues, termite damage, or potential repairs that could cost you dearly later.
These can range from $300 to $700 and while not compulsory, are well worth the investment. Make sure you note on any contract that the purchase is subject to building and/or pest inspection.
Council Rates and Utility Connections
Once you own a home, you’ll need to budget for council rates, water rates, and other ongoing utility costs. These vary depending on your location and property size. Most can be paid quarterly, or you can arrange a direct-debit.
Speak to your local Elders Insurance agent for a quote on home and contents insurance.
Body Corporate Fees
If you're purchasing a unit or townhouse, body corporate fees cover the maintenance of shared spaces like gardens, pools, and lifts. They may also cover insurance for the building. These fees can be quarterly or annually and vary widely.
Conveyancing and Legal Fees
A conveyancer or solicitor handles the legal aspects of transferring property ownership. Costs generally range from $800 to $2,000 but are crucial to ensure a smooth transaction.
Understanding these costs upfront can help you budget effectively and avoid any nasty surprises.
Disclaimer: This information is general in nature and does not consider your personal objectives, financial situation or needs.
Brokerage services provided by Elders Home Loans Pty Limited (ABN 22 118 064 654; Australian Credit Licence 384408) or its authorised credit representatives; or by Elders Asset Finance Pty Limited (ABN 39 670 506 617; Credit Representative Number 558452) as authorised credit representative of LMG Broker Services Pty Limited (Australian Credit Licence 517192). Lending criteria apply. Not all products of all lenders may be offered.